It looks like Imprimerie Chirat Société Anonyme (EPA:MLIMP) is about to go ex-dividend in the next 3 days. If you purchase the stock on or after the 15th of January, you won't be eligible to receive this dividend, when it is paid on the 17th of January.
Imprimerie Chirat Société Anonyme's next dividend payment will be €0.76 per share, and in the last 12 months, the company paid a total of €0.95 per share. Looking at the last 12 months of distributions, Imprimerie Chirat Société Anonyme has a trailing yield of approximately 6.7% on its current stock price of €14.2. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! So we need to investigate whether Imprimerie Chirat Société Anonyme can afford its dividend, and if the dividend could grow.
If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Imprimerie Chirat Société Anonyme paid out more than half (71%) of its earnings last year, which is a regular payout ratio for most companies.
Have Earnings And Dividends Been Growing?
Stocks in companies that generate sustainable earnings growth often make the best dividend prospects, as it is easier to lift the dividend when earnings are rising. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. For that reason, it's encouraging to see Imprimerie Chirat Société Anonyme's earnings over the past year have risen 48%. While we'd be remiss not to point out that a year is a very short time in dividend investing, it's an encouraging sign so far.
We do note though, one year is too short a time to be drawing strong conclusions about a company's future growth prospects.
Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the past ten years, Imprimerie Chirat Société Anonyme has increased its dividend at approximately 5.6% a year on average. It's good to see both earnings and the dividend have improved - although the former has been rising much quicker than the latter, possibly due to the company reinvesting more of its profits in growth.
To Sum It Up
Should investors buy Imprimerie Chirat Société Anonyme for the upcoming dividend? Earnings per share are growing at an attractive rate, and Imprimerie Chirat Société Anonyme is paying out a bit over half its profits. We think this is a pretty attractive combination, and would be interested in investigating Imprimerie Chirat Société Anonyme more closely.
Want to learn more about Imprimerie Chirat Société Anonyme's dividend performance? Check out this visualisation of its historical revenue and earnings growth.
A common investment mistake is buying the first interesting stock you see. Here you can find a list of promising dividend stocks with a greater than 2% yield and an upcoming dividend.
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